International rating agency Moody's Investors Service has raised Tinkoff Bank's ratings, namely long-term local currency and foreign currency deposit ratings and senior local currency unsecured debt rating from B2 to B1, with the outlook lowered from positive to stable, BCA and adjusted BCA from b2 to b1, foreign currency subordinated debt rating from B3 to B2, and long-term CRA from B1(cr) to Ba3(cr). The bank's short-term deposit ratings were affirmed at Not Prime, and short-term CRA at Not Prime(cr).
The rating action primarily reflects stable indicators of the bank's creditworthiness during a credit cycle thanks to a more sustainable business model compared to most Russian banks that specialize in consumer lending, Moody's noted in a press release. Analysts took into account the bank's improved profitability due to a drop in the cost of funds and credit costs.
The rating agency expects the bank to deliver strong financial results over the next 12-18 months, and also solid cushions of capital and liquidity.
